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“The millionaire says to a thousand people, ‘I read this book and it started me on the road to wealth.’ Guess how many go out and get the book? Very few. Isn’t that incredible? Why wouldn’t everyone get the book? A mystery of life.” – Jim Rohn

Mr. Rohn explains that if we want to make the right financial decisions in our lives, we should depend on the same sources the wealthy read. This past month four different iconic financial resources said the same thing:

The resale of existing homes fell 3 percent in September according to the National Association of Realtors.[i] A new wave of foreclosures is scheduled to hit the U.S. housing markets.[ii] Homeownership levels experienced their largest decline since the Great Depression.[iii] Is there any good news about housing? Are there any signs of life in the U.S. property markets?

In fact, there are significant signs that favor a recovery in many markets around the country. Beracha et al. (2011)[iv] reports that housing affordability is at record levels in most of the country.

The study examines housing affordability from a number of different vantage points. The first investigation by the researchers is into the relationship between property prices and average income on a state-by-state basis and the country as a whole. In general, lower ratios (Price/Income) indicate better property affordability. For example, the average affordability score for Florida over the last …

Most people get it backwards. They shop for a home, THEN, they try to structure the financing for it. They make the emotional decision of buying the home of their dreams, THEN, try to apply logic in how they pay for it. Many even go “online” and play with what is affordable by underwriting standards without TRULY considering their future.

I am always fascinated by mortgage underwriting “standards” when they don’t even take into account some very large variables that affect an applicant’s cash flow, and thereby, their ability to repay the loan or maintain a lifestyle they want:

-Are you single or a family of six? Costs for food and clothing alone are very different.

-Do you live in a state that requires State Income Tax or not? Another significant part of the equation.

-How often do you like to eat out or vacation? Are you willing to sacrifice these things for a bigger or nicer home?

Falling in love with a home without considering the REAL impact on your lifestyle is a recipe…

If you are in the market to buy a home of your own, you need to ask yourself one question:

WHY?

It seems like a simple enough question yet it is not. Experts are predicting that, in many markets, prices will continue to soften. That has caused many buyers to stay on the fence of indecision hoping to buy at the optimum time. If the reason you are buying is to do a quick ‘flip’ of the property to make money, waiting most definitely makes sense.

What if the reason you are moving isn’t about finances however. Does it still make sense to delay? That depends on why you are buying. What if your purchase is more about improving the quality of life for you and your family? Or moving into a school district where your child’s talents will be maximized? Or being closer to friends and family? There is a cost to delaying any of these decisions.

We realize everyone wants to make a sound financial decision no matter the actual reason for moving. Delaying in a hope to ‘time’ the market migh…

Here are a few surprising and simple ways to cut your energy bill this season.

Put lamps in the corners: Did you know you can switch to a lower wattage bulb in a lamp or lower its dimmer switch and not lose a noticeable amount of light? It’s all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.

Switch to a laptop: If you’re reading this article on a laptop, you’re using 1/3 less energy than if you’re reading this on a desktop.

Choose an LCD TV: If you’re among those considering a flat-screen upgrade from your conventional, CRT TV, choose an LCD screen for the biggest energy save.

Give your water heater a blanket: Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A fiberglass insulation blanket is a simple addition that can cut heat loss and save 4% to 9% on the average water-heating bill.

We believe very strongly that now is the time to buy a home. Some will say we are just saying this to create real estate transactions and commissions. Because of that, today we will quote what those outside the real estate profession are saying to the people who look to them for financial advice.

The Wall Street Journal

Last week, in an article entitled It’s Time to Buy That House, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:

This beautiful 2 Story Home For Sale in Colorado Springs is a delightful blend of casualness and elegance. Click Here to Tour This Home For Sale in Colorado Springs! Featuring 4 Bedrooms, 4 Bathrooms, 3 Car Garage and 4,441 Square Feet. Perfect for the Move Up Buyer or if you are Relocating to Colorado Springs. As you enter the home you are greeted by a Grand 2 Story Entry and Beautiful hardwood floors. The Main Level Boasts a Formal Dining Room and Living Room. The Open, Well-Appointed Kitchen with Granite Countertops, New Stainless Steel Appliances, Eating Area and Pantry will entice you to want to entertain. The Great Room is surrounded in Windows and Features a Two-Story Vaulted Ceiling and Fireplace. Your Eyes are immediately drawn to the Unobstructed Views of Pikes Peak and the Front Range from the Great Room. Escape the Frantic Pace of Daily Life and Unwind in the Upper Level Master Retreat with a Luxurious, Attached 5 Piece Master Bathroom boasting beautiful granite countertop…

In a normal real estate market, it may make sense to wait for the spring buyers’ to appear before placing your house up for sale. The current real estate market is anything but normal however. The increase in supply of distressed properties will overshadow any increase in demand for housing over the next 6 months. This is reflected in the findings of two groups: Clear Capital and JPMorgan Chase.

Dr. Alex Villacorta, Director of Research and Analytics at Clear Capital explained last week:

“The housing market has yet to demonstrate the fundamentals necessary to overcome a seasonal slowdown over the next six months, which drives our projected 3.2 percent drop in national home prices through the first quarter of 2012.”

HousingWire quotes analysts at JPMorgan Chase:

“Home prices could dip another 6% to 7%, before hitting rock bottom in early 2012.”

Bottom Line

If you are thinking of selling, it would be wise to put your house on the market before prices fall again.

Beautiful Ranch Style Home For Sale in Colorado Springs with 5 Bedrooms, 3 Bathrooms, 2 Car Garage with Workshop and over 3,000 Square Feet. Chick Here Tour This Home For Sale in Colorado Springs Today! Spacious Living Room with Cozy Fireplace is Perfect for Entertaining. The Dining Area Open to the Kitchen and Living Room with Walk Out. The Perfectly Appointed Kitchen boasts Ample Cabinet and Counter Space, Huge Center Island and New Stainless Steel Appliances. Beautiful Hardwood Floors Throughout, New Carpet and New Paint. Unwind in the Main Level Master Suite with an attached, Updated Bathroom. There are 2 Spacious Secondary Bedrooms on Main and 2 on the Lower Level. The Finished Walk Out Basement includes a Cozy Fireplace, Recreation Area, Bonus Room and Large Laundry Room with cabinet space. The Expansive Backyard boasts a Covered Patio and is Perfect for Summer Gatherings. This Home is in a Great Location with Easy Access to Shopping, Dining, Schools and Within Walking Distance …

As underwriting guidelines for lenders become more stringent, we need to re-examine what a good mortgage application looks like. As home buyers begin their search for a home, there are a few items they should be aware of that they can do to help get their loans approved (with the best possible terms), and, at the same time, lessen some of the stress that goes along with the mortgage process.

1. Income documents

Most lenders want to see a full month of paystubs and two years’ complete Federal Tax Returns. Assembling them ahead of time and holding on to every paystub you get is a good idea even before you find a home and/or submit your mortgage application because it will save you time later. Moreover, looking at those documents and being prepared to explain any deductions that show up is crucial. Child support, alimony, garnishments, and Unreimbursed Employee Expenses are often crippling factors that, if explained and dealt with upfront, can make your loan approval smoothe…

The National Association of Realtors (NAR) released their Existing Sales Report two weeks ago and in the report they discussed a troubling trend: cancelled contracts are increasing dramatically. NAR defined the issue:

It appears that (subsequent to my writing of this blog yesterday) that the House has passed a bill which the President is expected to sign which extends the current Funding Fees until November 17th. Despite the fact that the VA’s own website still states that the change is expected October 1st, that information seems to be outdated. The good news is that the change is still, by all extimations coming. It just looks like we will be waiting another six weeks! – Dean Hartman

Effective October 1 November 17, 2011, the costs associated with getting a VA mortgage are going DOWN!

An overview: VA mortgages are bundled, securitized and sold in the secondary market with the backing of the Federal Government. In order to insure these mortgages, the government charges a type of insurance premium, called a VA Funding Fee, which is typically added to the loan amount (thereby financed).

Remember, too, that the VA (subject to some restrictions) will insure loans up to 100% of the purchase…